Hang Seng Plummets, Energy Inflation Shock Triggers Asian Risk-Off
Hong Kong stocks opened sharply lower on Monday (March 9th) morning. The Hang Seng Index plunged 705 points, or 2.7%, to 25,058, reversing the previous session's gains after US index futures weakened and regional markets also declined amid the inflation shock from soaring oil prices.
The surge in energy costs has fueled concerns about higher living costs and increased the risk of tight monetary policy—even opening the door to interest rate hikes in some countries. Risk-off sentiment has also strengthened as markets believe the energy shock could hamper economic recovery and prolong inflationary pressures.
Geopolitically, Iran appointed Mojtaba Khamenei as Supreme Leader following the death of his father. This move was seen as confirming the continued dominance of hardliners and is said to have triggered a strong response from President Trump, who called the development "unacceptable," deepening uncertainty in the region.
In China, equities fell more than 1%, ending a two-day rally, as ongoing producer deflation once again highlighted weak demand. Market participants largely ignored the CPI data, which rose to a three-year high of 1.3%, which was seen as being driven more by seasonal factors such as travel and Lunar New Year shopping. In Hong Kong, the decline was broad-based, led by MMG (-7.5%), Swire Properties (-7.1%), Sun Hung Kai Properties (-6.7%), Cathay Pacific (-6.6%), and AIA Group (-5.7%). (alg)
Source: Newsmaker.id
